NAIROBI (Xinhua) --Kenyan manufacturers on Tuesday called for tax
breaks to boost the competitiveness of the sector.

Sachen Gudka,
chairperson for Kenya Association of Manufacturers (KAM), said
that the current production costs in Kenya are approximately ten
percent higher compared to other low-cost manufacturing nations.

“We are therefore
urging the government to lower taxes so that we can manufacture
products that can compete in the region,” Gudka said during the
fourth annual tax summit.

The three-day event
brought together over 100 policy makers and tax experts to
review ways to widen Kenya’s tax base.

Gudka said that
Kenya used to be a key exporter of manufactured goods to the
East and Central African region but rising costs have made Kenya
gradually lose the market.

Gudka said that tax
breaks will provide incentives for manufacturers to expand their
production capabilities. According to KAM, the manufacturers
sector currently provides about 300,000 direct jobs.

“With additional
incentives, we can double the number of jobs in the next five
years,” he said.

He said that Kenya
is not competitive in industrial sectors that are highly
dependent on affordable electricity.

The chairperson
noted that the agro-processing, textile, apparel and leather
sectors represent industries with biggest potential in Kenya.